Returns not filed during VCES period

[S.C. WADHWA]

Dear Experts,

We have paid service tax under VCES in two installment. After approaching for VCES-3 acknowledgement, they have given us one form of undertaking which is to be submitting very soon. In the undertaking there is one point ' I HAVE FILED/NOT FILED my service tax returns(ST-3) during the declared period, which we have not filed till date.

Now my query is whether we should file four returns related to declared period with late fee of ₹ 20000/- each before submitting the declaration 'TO BE SHOWN THAT THE RETURNS HAVE FILED' Whether it is correct, Please give your expert opinion immediately.

 

Regards,

WADHWA

[CSSANJAY MALHOTRA]

Dear Mr. Wadhwa,

Please note that VCES-3 has no linkage with Service Tax Returns. When you are declaring that RETURNS NOT FILED, same means that you have not filed Service Tax Returns during the DECLARED PERIOD (period for which you have declared Service Tax Dues).

Further it has been clarified by CBEC in FAQ's as follows:

Q2. Whether a declarant shall get immunity from payment of late fee/penalty for having not taken registration earlier or not filed the return or for delay in filing of return.

Yes. It has been provided in VCES that, beside interest and penalty, immunity would also be available from any other proceeding under the Finance Act, 1994 and Rules made thereunder

AI Summary

VCES scheme: declaring unfiled service tax returns requires no prior filing and grants immunity from late fees and proceedings. VCES requires declarants to state whether Service Tax returns for the declared period have been filed; this statement records filing status rather than obliging prior filing. CBEC FAQs clarify that VCES-3 has no linkage with ST-3 filing, and the scheme provides immunity from late fee, penalty and other proceedings under the Finance Act, 1994, separate from interest and tax declaration obligations.